In today’s briefing:
- LRCX. China, DRAM Tailwinds Driving Modest Recovery
- Waystar IPO Preview: Debt-Fueled Expansion Through M&A Deals In A High-Interest Rate Environment
- Intuitive Surgical (ISRG US): Mixed Q3 Result; Encouraging Procedure Growth Is the Key Positive
LRCX. China, DRAM Tailwinds Driving Modest Recovery
- Q323 revenues of $3.48 billion, ahead of guidance and up 8.6% sequentially
- December quarter guidance of $3.7 billion at the midpoint suggests ongoing recovery
- However, still-declining services revenue indicates that all other headwinds remain in place
Waystar IPO Preview: Debt-Fueled Expansion Through M&A Deals In A High-Interest Rate Environment
- Waystar Holding, a cloud-based technology company and healthcare RCM solution provider, filed for a $100M placeholder IPO.
- Founded in 2017 through the merger of two healthcare firms, ZirMed and Navicure, Waystar Holding provides mission-critical cloud software to healthcare organizations in the United States.
- The company has ~$2.3B of outstanding borrowings and plans to use net proceeds from an upcoming IPO to repay outstanding indebtedness under credit facilities.
Intuitive Surgical (ISRG US): Mixed Q3 Result; Encouraging Procedure Growth Is the Key Positive
- In 3Q23, Intuitive Surgical (ISRG US) recorded 12% YoY revenue growth to $1.74B, driven by growth in da Vinci procedure volume and an increase in the installed base of systems.
- 3Q23 procedure growth was 19%, versus 20% in 3Q22 and 22% in 2Q23. Systems revenue declined 11%, due to higher number of systems placed under lease and lower China demand.
- The company now expects 2023 procedure volume growth of 21–22%, up from previous estimates of 20–22%. Significant material supply chain disruptions or hospital capacity constraints are not expected.
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